do not give solution in image format This question uses the same financial data as Questions 6 & 7, but it is a separate question.The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds.Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant iscapable of producing 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Product Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in thetable below.Raw materials inventoryWork-in-process inventoryFinished goods inventoryTotal manufacturing costsGoods available for saleLower Panama.comCost of goods soldPurchases of raw materialsMarketing salariesmanevarsNon factory administrative salariesFactory maintenance staff salariesDirect laborBuilding rentalمساAdvertisingUNlides/ElectUtilities (Electricity, water, phone...)Indirect laborSales commissions (5% of sales)Factory equipment depreciationItema) $1,319,300 & 459,250b) $1.325,300 & 469,250c) $1,294,750 & 417,500d) $1,276,350,& 418,500e) $1,319,600 & 459,750fl None of the above1-Jan-2006$60,00072.00040,00031-Dec-2006$20,00088,00050,000During the Year$1,310,2501,334.2501,284,250164.500236,500235,000154.000???250,000$42.000148,000120,000110,00098,400490,250The company anticipates 2007 production volumes to increase by 10% over 2006.If total fixed costs and the variable product cost per unit in 2006 remain the same in 2007, what are the anticipated total manufacturing costs to be incurred and the anticipated total unit production volume in 2007?

Product cost: The product cost is the cost that is incurred specifically in the manufacturing of the…

The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds. Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producing 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Product Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in the table below. Raw materials inventory Work-in-process inventory Finished goods inventory Item 1-Jan-2006 $60,000 72.000 40,000 31-Dec-2006 $20,000 88,000 50,000 During the Year DE SED SEA

The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds. Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producing 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Product Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in the table below. Raw materials inventory Work-in-process inventory Finished goods inventory Item 1-Jan-2006 $60,000 72.000 40,000 31-Dec-2006 $20,000 88,000 50,000 During the Year DE SED SEA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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